11 December 2012

Exercising Financial Prudence Tip #4 - Don't Spend More Than You Earn

I have this relative whose gross salary is close to S$4000, after CPF deduction, he takes home about S$3000+. He owes money to a few banks, totaling more than S$50000, all credit card debts.

I have no idea how he managed to chuck up all that debt, right now, Credit Counselling Singapore is trying to help him negotiate with the banks on installment repayments at a lower interest, I hope one of those banks will help him.

And if one of the banks does help, what I understand from him is he will need to pay about S$700 a month, for 8 years.

As for me, I don't think I will ever get a credit card, I still prefer to spend whatever amount there is in my bank account.

No money? Don't buy, it's that simple, I can't imagine myself slogging 8 years just to pay that kind of money.

And actually that relative didn't even know that there is such an agency in Singapore that provide advise and assistance on credit card debt, so another purpose of this post is to create awareness, if you have problem managing your credit card debt, please do not hesitate to call 1800 CALL CCS (1800 2255 227), or email enquiry@ccs.org.sg.

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